Nvidia fell 2.5%, Micron 5.7% and Sandisk 10.6%, extending a weeks-long selloff in AI winners and leaving the S&P 500 down 0.2% while the Dow rose 0.2%.
The retreat reflects concern that AI-linked shares ran too far, too fast and that demand for chips and memory may fade if artificial intelligence fails to deliver the promised profits and productivity.
Taiwan Semiconductor beat profit forecasts, but its U.S.-traded shares still slipped 2.2%, underscoring how valuation worries are overpowering solid earnings across the chip sector.
South Korea's Kospi dropped 6.4% as Samsung Electronics and SK Hynix slid, with a Bank of Korea rate hike adding pressure to one of the world's most AI-heavy markets.
Oil near $85 a barrel and the 10-year Treasury yield at 4.57% added to the strain, as investors weighed Iran war risks, possible central-bank tightening and mixed U.S. economic data.